Iran-Israel War Sparks Concerns Over Fuel Prices and Global Economy

The ongoing Iran-Israel war has created uncertainty among the masses regarding potential future hikes in the prices of LPG, CNG, PNG, LNG, petrol, and diesel, and their impact on the global economy. Questions are arising about the balance of payments, inflationary trends in gold and silver, and whether crude oil prices will rise or stabilize.
U.S. President Donald Trump announced a delay in a threatened strike on Iran’s energy infrastructure and extended the deadline for Tehran to reopen the Strait of Hormuz until April 6, 2026. India is among the five countries permitted by Iran to pass vessels carrying crude oil, LPG, and other commodities through this strategic route. Currently, the Indian Rupee trades at 94–86 paise to one U.S. dollar.
There is public concern over the supply of petrol, diesel, LPG, and CNG in India. However, Prime Minister Narendra Modi and Union Petroleum and Natural Gas Minister S. Hardeep Singh Puri have assured citizens that there is no shortage. Most fuel imports from the Middle East reach Gujarat Port in 4–7 days, while crude oil from Russia takes around 30–45 days. Domestic production by ONGC supplements these imports, and petroleum companies manufacture petrol, diesel, petrochemicals, and other derivatives.
To protect the common man, the Union Government has reduced excise duty on petrol from Rs 13 to Rs 3 per litre and on diesel from Rs 10 to zero, mitigating potential inflationary effects. The administration is urged to issue daily bulletins on fuel availability across cities and provide real-time updates through social media and other media platforms. Additionally, LPG cylinder booking facilities should be extended to senior citizens aged 70 and above.
To further manage fuel scarcity, the government should increase the frequency of EMU and short-distance electric trains and instruct state governments to enhance public transport services. This would reduce dependency on personal vehicles, conserve fuel, and ease transportation for commuters until supply normalizes.
Author:
Rajat Kumar Mohindru
Journalist, Jalandhar City
(Views are personal)